India’s LPG imports shift back to UAE as US supplies plunge 58%; Oman leads LNG imports in Sept

India’s liquefied petroleum gas (LPG) import mix shifted back towards West Asia in September, with the United Arab Emirates emerging as the country’s largest supplier as shipments from the United States declined sharply, according to data from maritime intelligence firm Kpler.

The UAE accounted for 39% of India’s LPG imports in September, up from 13% in August, overtaking the US, which had been the largest supplier for six consecutive months. The shift indicates a recovery in Gulf supplies following disruptions to shipping through the Strait of Hormuz amid the US-Iran conflict, Moneycontrol reported.

The UAE supplied 547,000 tonnes of LPG in September, a 182% increase from 193,000 tonnes in August. In contrast, US shipments fell 58% month-on-month to 323,000 tonnes from August levels, reducing the country’s share of India’s LPG imports to 23% from 53%.

India’s overall LPG imports, however, declined 4% in September to 1.39 million tonnes from the previous month, suggesting that the recovery in supplies from West Asia has not yet translated into an increase in total imports.

Gulf supplies recover

The United States had emerged as India’s largest LPG supplier after disruptions in the Strait of Hormuz in late February severely affected shipments from Gulf countries. The latest data points to a gradual rebalancing of supply sources as cargoes from the region return.

Imports from other Gulf suppliers also increased in September. Kuwait supplied 132,544 tonnes, up 15.6% from August, while shipments from Qatar rose 76% to 115,340 tonnes.

India did not import any LPG from Saudi Arabia during the month. Other suppliers included Iran, which supplied 89,000 tonnes, Oman and the Republic of the Congo at 23,000 tonnes each, Algeria at 24,000 tonnes and Brunei at 4,000 tonnes.

India’s LPG imports: Supplier-wise breakdown in September

Kpler said physical supply flows from the Gulf had demonstrated greater resilience than initially expected. Combined crude volumes leaving the Gulf, excluding Iran, alongside supplies from Saudi Arabia’s west coast and the UAE’s east coast, had recovered to around pre-conflict levels when diverted shipments were included.

Diversification remains important

India imports around 60% of its LPG requirements, with approximately 90% of those imports historically coming from Gulf countries through the Strait of Hormuz. The disruption highlighted the vulnerability of India’s energy supply chains to geopolitical tensions and shipping bottlenecks.

Analysts expect Indian refiners to continue diversifying their sourcing beyond the Gulf, even as West Asia remains a critical supplier of crude oil and LPG.

Matt Wright, lead and principal freight analyst at Kpler, said freight costs remained elevated because of continued risks to vessels transiting the Strait of Hormuz.

Oman leads India’s LNG supplies

A similar shift was visible in India’s liquefied natural gas (LNG) imports in September, with Oman emerging as the country’s largest supplier. According to Kpler data, Oman supplied 585,000 tonnes, accounting for 27% of India’s LNG imports, up 11.6% from August. US LNG shipments fell 59% month-on-month, reducing the country’s share to 16%, while Qatar’s share dropped to 4.3%. India’s total LNG imports declined 14% to 2.17 million tonnes.

Oman’s export facilities at Qalhat lie outside the Strait of Hormuz, giving its cargoes a shipping advantage amid regional disruptions. However, Oman’s limited export capacity means it cannot replace Qatar’s supplies at scale.

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